15 Sep Minnesota real estate weekly update
Minnesota real estate weekly update
This is the Minnesota real estate weekly update for September 15th, 2023. Our Minnesota real estate market is predicted to appreciate 5.6% in 2023.
We review real estate facts and future trends.
We are now in our late summer real estate season and the result of low inventory we are in a seller’s market in many price ranges. This means we have lower than needed homes for sale in many areas for the number of buyers in the marketplace. You should strongly consider working with an experienced real estate agent to give you an edge in this market. Experience is priceless!
Here are current facts for our Minnesota real estate market. Our current housing affordability Index for Minnesota real estate for July was 109, and this compares to 123 this same time last year. The higher the number means the greater home buying affordability in the Twin Cities. Our current inventory of homes for sale is 8,006. In comparison, we had 9,311 at this time in 2022. So, the inventory of homes for sale is 11.3 % less than last year. A point of interest, in 2009 at the time of our first real estate correction in Minnesota in 40 years, we had over 36,000 homes for sale in the seven county Minneapolis/St. Paul metro area. Minnesota real estate pending sales for the last week, which have sold but not yet closed, was 933. That compares to 994 pending home sales last year. That is a decrease of 6.1% from the same week last year.
An average real estate market would have a three-month supply of housing inventory and we have 2.2 months (July). Last year it was a 1.9 month’ supply. The average number of days on the market was 29 days in July compared to 22 days last year at the same time.
Minnesota sellers benefit financially when real estate values rise. The median sales price (July) was $375,000 in the Twin Cities area. A market health indicator is the comparison of our sales price to the original list price. For July, the average sale to list price was 100.8%. And that compares to 101.5% in 2022. For even more Minnesota real estate market information visit my website at https://www.mnrealestate.com/twin-cities-information/area-appreciation-rates/. It features a comprehensive review of our Minnesota real estate market for those that like all the data!
Our current interest rates in the Twin Cities
Interest rates – had a .25% rate increase from the Federal Reserve last. Look for rates to increase by the same amount in September and then stay pretty much the same for 2023 and start to go down next year. Rates are mid 7% for conventional and high 6% for FHA/VA mortgages. Just reach out to me if you need contact information about a lender with those interest rates.
My opinion of the future of Minnesota real estate
Our interest rates look to stabilize with inflation decreasing after the next small Federal Reserve increase this month. Many buyers are jumping into this market now with current interest rates because when rates go up the numbers of buyers in the market go down and we have less pressure on multiple offers and higher prices. These buyers will just do a no cost refi when rates go down and beat the market! When rates go down next year as predicted then more buyers will come into the market and we will again seen unreasonable buying pressures like last year.
This is a suitable time to discuss your housing needs for 2023 and 2024!